Eco-friendly home improvements can mean big bucks back in your wallet thanks to their money-saving qualities and a boost from the Inflation Reduction Act.
One of the most effective upgrades is a heat pump, which, contrary to its name, both heats and cools your home, often more efficiently than a standard furnace. Heat pumps work by moving heat around your home, either pumping it outside to cool it or pulling it inside to heat things up, using a refrigerant that compresses and decompresses as needed to achieve your temperature goals.
Making the switch to a heat pump saves money by utilizing one system to manage your home environment versus a separate heating and cooling system. It does require an upfront cost of $4,000 to $8,000 to install, but the Inflation Reduction Act (IRA) helps offset that cost, if it doesn't cover it entirely.
Through the bill's High-Efficiency Electric Home Rebate program, low-income households can earn 100% of the cost back, putting $8,000 back in your pocket, along with other rebates available. Moderate-income houses earn 50% of the costs back, and both types of homes can earn a $2,000 tax credit for 10 years for making energy-efficient upgrades.
Those savings continue when it comes to annual costs. The Department of Energy reported that homes already using electric heating options will save $1,063 this coming winter, compared to other sources like propane and oil. Because heat pumps also use electricity, they stand to show similar savings annually for homeowners.
With all these benefits, heat pumps are becoming a popular option for homeowners and contractors working with new construction. If you're looking to make the switch and get some much-needed money back in your pocket, you can check out EnergySage's heat pump marketplace. The organization helps people find the best product for their situation and navigate the rebate process, all with support from the government.
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